New Delhi, January 25: Cloud software major SAP has announced a company-wide restructuring programme in 2024 that will affect approximately 8,000 positions. The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programmes and internal re-skilling measures, the company said in a statement.
SAP had about 108,000 full-time employees at the end of 2023 and the restructuring will affect over 7 per cent of its workforce. Reflecting re-investments into strategic growth areas, SAP said it expects to exit 2024 at a headcount similar to current levels. Microsoft Reaches 'USD 3 Trillion' Market Cap For First Time in Its 48-Year History, Becomes Second Company After Apple.
SAP now expects 10 billion euros ($10.85 billion) in 2025 adjusted operating profit which reflects share-based compensation expenses of approximately 2 billion euros. “Restructuring expenses are preliminarily projected at around 2 billion euros, the vast majority of which is expected to be recognised in the first half of 2024,” said the company.
Furthermore, the 2024 outlook and 2025 ambition for free cash flow assume all payouts associated with the planned restructuring programme will be completed in 2024, it added. SAP said it continues to expect Cloud revenue of more than 21.5 billion euros and total revenue of more than 37.5 billion euros. Samsung Will Likely Launch Affordable Foldable Smartphone To Fulfill Rising Demand by Fans in Second Half of 2024: Reports.
In 2024, SAP will further increase its focus on key strategic growth areas, in particular Business AI. It also intends to transform its operational setup to capture organisational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth.
(The above story first appeared on LatestLY on Jan 25, 2024 10:57 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).